Mr. Robin Phinney reports
Robin L. Phinney acquired ownership and control of 1,100 common shares of Karnalyte Resources Inc. on Dec. 14, 2010, pursuant to the initial public offering (IPO) of Karnalyte by way of long form prospectus. Details of the acquisitions are available on SEDI, as required.
As at Feb. 1, 2011, Mr. Phinney owns or controls 3,944,400 common shares of Karnalyte, representing approximately 19.6 per cent of Karnalyte's issued and outstanding common shares. Of the 3,944,400 common shares owned or controlled, 694,400 common shares are held personally by Mr. Phinney and 3.25 million common shares are held by 1385659 Alberta Ltd., a private company controlled by Mr. Phinney. Mr. Phinney is also the holder of the following stock options of Karnalyte: (i) 117,000 options to purchase common shares on or before Dec. 20, 2015, at a price of $8.60 per share; (ii) 150,000 options to purchase common shares on or before Feb. 4, 2012, at a price of $5.00 per share; and (iii) 126,000 options to purchase common shares on or before Dec. 31, 2012, at a price of $5.00 per share. If the options were exercised and converted into common shares effective Feb. 2, 2011, Mr. Phinney would own 4,337,400 common shares, representing approximately 21.6 per cent of Karnalyte's issued and outstanding common shares.
The acquisition made by Mr. Phinney from treasury pursuant to the IPO was at the IPO price of $8.60 per share.
This acquisition by Mr. Phinney was made for investment purposes and Mr. Phinney and/or 1385659 may from time to time increase or decrease their holdings in Karnalyte depending on market conditions or any other relevant factor. This new release is being issued pursuant to securities legislation in each province of Canada and will be filed on the System for Electronic Document Analysis and Retrieval (SEDAR) with the report required under National Instrument 62-103. The issuance of this news release is not an admission that Mr. Phinney is a joint actor with any other entity